Tax Scams and Ways to Protect Yourself

by | Feb 10, 2022 | Resources

With tax season comes an increase in crimes and/or scams relating to income tax refunds and liabilities. Here’s how you can prepare for any possible IRS crimes or IRS scams, including how to protect yourself from tax fraud and tax scams.

For more information on Identity Protection Pins, click here.
For more information on how to sign up for a WI Identity Protection Pin, click here.

 

Types of Tax Scams

With tax season comes an increase in crimes and/or scams relating to income tax refunds and liabilities. These include:

  • Tax returns filed under someone else’s social security number.
  • Phone calls or emails alerting you to an outstanding tax liability.
  • Stolen refund checks.

 

How To Protect Yourself

To protect yourself we recommend and advise the following:

  • File your tax return as early in the year as possible. Tax refunds are given on a first come basis according to social security number. If your social security number is stolen and used to claim a refund prior to you filing your return, your refund will be delayed and held by the IRS until you can prove your identity.
  • The IRS will NEVER contact you via phone or email. No matter how official a phone call or email may appear, you should contact your tax preparer to determine the legitimacy of the request.
  • Provide bank account information to enable the IRS and state taxing authority to automatically deposit your refund.
  • Beginning in 2021, the IRS Identity Protection PIN (IPPIN) Opt-In program has been expanded to all taxpayers who can properly verify their identity. An IP PIN helps prevent your social security number from being used to file a fraudulent federal income tax return. You can use the Get an IP PIN tool on IRS.gov to request an IP PIN, file form 15227 if your income is $72,000 or less, or make an appointment to visit an IRS Taxpayer Assistance Center.
  • Beginning in 2021, the Wisconsin Identity Protection Pin program will allow taxpayers to receive an IP PIN to be used on their Wisconsin return. Taxpayers who sign up for this program will receive a new PIN each year.